where do I claim 1099-S

LaLa

My family had had property for about 100 years and the responsibility has been split between 11 families. as the generations pass away the responsibility falls to the next generation. it was originally willed to my grandmother who passed away in 1993 and my mother who passed away in 1991. the property finally sold and each family got 35k but I had to be the executor of my grandmother's estate. and the payment was made to the estate of. how do I file the proceeds on the 1099S

KeriC

@LaLa
Usually, you enter the sale of an inherited home on the Stock or Investment Sale Information screen. (If you used the home as your main residence or a rental home, it is reported differently.)

If the 1099-S was issued only in your name and it is reporting the full amount of the sale and not just your portion, you will need to include an adjustment to the gain or loss. 

Because you inherited a home, your cost basis in the home will usually be the fair market value of the home on the date of death. For example, if you inherit a home from your grandfather that is worth $100,000 on the date your grandfather passed away, then your cost basis is $100,000, even if your grandfather originally purchased the home 20 years ago for $30,000. If you sell the home 8 months later for $95,000 then you would report a $5,000 loss on your tax return for the sale.

In very rare scenarios, an executor of an estate may elect to do an alternate valuation 6 months after the date of death to reduce estate taxes. In that scenario, the cost basis is the alternate valuation instead of the fair market value at the date of death.

If the 1099-S issued to you is reporting the full sales price, be sure to enter the full 1099-S value as the proceeds. After you enter the basic information, such as the inheritance date, sale date, proceeds and basis (enter only your basis), you will come to a page in the software that asks if you have any adjustments. You will need to select Yes and then select the option for "I have selling expenses or option premiums that aren't already deducted from the selling price". As you proceed to the next page, you will enter the amount of the proceeds paid to other family members as the selling expenses or option premiums you paid. Once this has been entered, your return should reflect your individual portion of the sale gain or loss on your return.

Source for which box to check for the adjustment: Page 8 under Code E of Form 8949 instructions.

 If the 1099-S only reports your share of the proceeds, you don't need to enter an adjustment.